Global Pandemic Dividend Cuts - Impact On Lanny's Portfolio
The global pandemic from the coronavirus has shaken up the investment world.
OXY cut their dividend, for obvious reasons, from $0.79 per share, per quarter, to $0.11.
I am sticking to the strategy and am getting back to basics.
The pandemic is tearing down the walls us dividend investors built! We must protect this house that pumps out portfolio income. The dividend cuts have cut deep. The pain is real. However, could it be worse?
The dividend cuts
Dividend cuts have been almost commonplace over the last 4-8 weeks. There's no debate, the global pandemic from the coronavirus has shaken up the investment world. First, the pandemic happened. Secondly, you had the stay-at-home orders, causing businesses and spending to completely freeze. Third, the oil wars occurred, causing the future contracts for May to drill into negative territory, as there is now limited/to no space left for oil to go. In baseball, we call that three strikes. You know what happens after that third strike? You're out, and quite a few of us were… caught looking.
Therefore, I will go through each and every dividend cut that my wife and I have endured. Each dividend cut will be from the individual companies we own, taken from our Dividend Portfolio.
*Amounts that my dividend income was from 12/31/19 and to where they are today/May 10th.
Occidental Petroleum (NYSE: OXY) - OXY cut their dividend, for obvious reasons, from $0.79 per share, per quarter, to $0.11. This was the first cut, during the second week of March, that I endured. My projected dividend income went from $156.32 to $23.41. Total dividend cut impact = $132.91.
Delta Air Lines (NYSE: DAL) - Then, there were the good old airlines. No question here what was about to occur. When no one is flying, there is no revenue coming in. Delta had to completely remove their dividend. Total dividend cut impact, when including my wife's position = $206.35. The pain and wounds start to swell.
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